Compare the annual cash outflows of two payments

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Present value with periodic rates Sam? Hinds, a local? dentist, is going to remodel the dental reception area and add two new workstations. He has contacted? A-Dec, and the new equipment and cabinetry will cost $15,000. The purchase will be financed with an interest rate of 7?% loan over 6 years. What will Sam have to pay for this equipment if the loan calls for semiannual payments 2 per? year) and weekly payments (52 per? year)? Compare the annual cash outflows of the two payments. Why does the weekly payment plan have less total cash outflow each? year?

Reference no: EM131511681

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